Interim Management Statement

City of London Investment Trust PLC
12 October 2007



THE CITY OF LONDON INVESTMENT TRUST PLC

HENDERSON GLOBAL INVESTORS

12 OCTOBER 2007


                    THE CITY OF LONDON INVESTMENT TRUST PLC

                          Interim Management Statement

           Review of the period from 1 July 2007 to 30 September 2007


MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD



Portfolio:  during the period there was net investment of £5.52m, although the
number of holdings in the portfolio decreased from 96 to 93.  The stocks that
were sold were Biffa, Corio, Enel,  Johnston Press and Mitchells & Butlers.
There are two new stocks in the portfolio:  BSkyB and Deutsche Telekom.



Gearing:  during the quarter gearing increased from 5.5% (at 30 June) to 7.0%
(at 30 September).



Dividends:  a fourth interim dividend of 2.62p per ordinary Share, in respect of
the year ending 30 June 2007, was paid on 31 August 2007 to holders registered
on 27 July 2007.  On 29 August 2007, the Company declared a first interim
dividend of 2.84p per ordinary share, in respect of the year ending 30 June
2008, to be paid on 30 November 2007 to holders registered at the close of
business on 26 October 2007.



Discount:  the share price discount to net asset value (with debt at par value)
narrowed over the period from 12.6% to 9.7%.



Changes to Board:  Mr Mark Nicholls resigned from the Board at the conclusion of
the AGM on 10 October.  On 24 September, it was announced that Mr Richard
Hextall would be appointed a director of the Company with effect from 1 November
2007.



Share Capital:  during the quarter the Company bought back 355,172 ordinary
shares at a cost of £1.38m.



There are no other material events or transactions to report.





PERFORMANCE AND FINANCIAL HIGHLIGHTS



Total Return Performance at 30 September 2007
                                                                  3 months    1 year      3 years      5 years
Net Asset Value per ordinary share                                   -2.1%    +11.7%       +64.9%      +126.2%
FTSE All-Share Index - 4% capped *  +                                -1.8%    +13.1%       +67.8%      +128.2%
FTSE All-Share Index +                                               -1.8%    +12.2%       +60.6%      +117.0%
Average UK Growth & Income Investment Trust Net Asset
Value
                                                                     -4.0%     +9.8%       +61.5%      +122.5%



Sources:  AIC Services Limited /  * Datastream



+  since 1 July 2005 the benchmark is the total return of the FTSE All-Share
Index - adjusted for a maximum 4% cap for any single stock.  Prior to this, it
was the total return of the FTSE All-Share Index.




Financial Position
                                                   at 30 September 2007                   at 30 June 2007
Net assets                                                      £689.3m                           £718.7m
Net asset value                                                 332.06p                           345.62p
Ordinary share price                                            300.00p                           302.00p
Discount                                                           9.7%                             12.6%
Gearing                                                            7.0%                              5.5%
Yield                                                              3.4%                              3.4%
Total Expense Ratio                                               0.44%                             0.42%





THE PORTFOLIO


Top 10 Investments                                  % of total assets                   % of total assets
                                                   at 30 September 2007                   at 30 June 2007
Vodafone                                                            4.8                               4.4
BP                                                                  4.5                               4.7
British American Tobacco                                            4.5                               4.3
HSBC                                                                4.4                               4.2

Royal Dutch Shell                                                   4.1                               3.9
Diageo                                                              3.9                               3.6

GlaxoSmithKline                                                     3.5                               3.0
BT                                                                  3.5                               3.6
Lloyds TSB                                                          3.1                               3.1
Barclays                                                            3.0                               3.2
Top 10 =                                                           39.3                              38.0




Sector Breakdown                                 % at 30 September 2007                 % at 30 June 2007
Financials                                                         24.2                              25.0
Consumer Goods                                                     17.5                              18.4
Oil & Gas                                                          10.9                              10.7
Consumer Services                                                  10.0                              10.3
Industrials                                                         9.2                               9.5
Telecommunications                                                  8.9                               8.1
Utilities                                                           8.1                               7.6
Basic Materials                                                     7.3                               7.0
Health Care                                                         3.9                               3.4





The objective of The City of London Investment Trust plc is to provide long-term
growth in income and capital, principally by investment in UK equities.  The
Manager is Henderson Global Investors Limited.   Further information on the
Company, including an up to date NAV and share price information, can be found
at www.cityinvestmenttrust.com



For further information, please contact:


Job Curtis                                              James de Sausmarez
Portfolio Manager                                       Head of Investment Trusts
The City of London Investment Trust plc                 Henderson Global Investors
Telephone: [phone]                                Telephone: [phone]

Sarah Gibbons-Cook
Investor Relations and PR Manager
Henderson Global Investors
Telephone: [phone]



                                    - ENDS -




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